v2.4.0.6
INTANGIBLE ASSETS
12 Months Ended
Dec. 31, 2013
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Disclosure [Text Block]

8. INTANGIBLE ASSETS

The Company’s indefinite-lived and amortizable intangible assets as recorded in the Consolidated Balance Sheets consisted of the following as of December 31, 2013:
 
 
 
 
 
 
Weighted Average Life (Years)
 
December 31, 2013
  
 
Gross Carrying Amount
 
Accumulated Amortization
 
Net
  
 
  
 
(Dollars in thousands)
Indefinite-lived intangible assets:
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
Goodwill
 
 
  
 
 
$
11,112
 
 
$
 
 
$
11,112
 
Trademarks
 
 
 
 
 
34,748
 
 
 
 
 
 
34,748
 
Total indefinite-lived intangible assets
 
 
 
 
$
45,860
 
 
$
 
 
$
45,860
 
Amortizable intangible assets:
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
Non-compete agreement
 
 
5
 
 
$
200
 
 
$
(113
 
$
87
 
Customer relationships
 
 
15
 
 
 
3,500
 
 
 
(661
 
 
2,839
 
Total amortizable intangible assets
 
 
 
 
$
3,700
 
 
$
(774
 
$
2,926
 
The Company’s indefinite-lived and amortizable intangible assets as recorded in the Consolidated Balance Sheets consisted of the following as of December 31, 2012:
 
 
 
 
 
 
  
 
December 31, 2012
  
 
Weighted Average Life (Years)
 
Gross Carrying Amount
 
Accumulated Amortization
 
Net
  
 
  
 
(Dollars in thousands)
Indefinite-lived intangible assets:
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
Goodwill
 
 
  
 
 
$
11,112
 
 
$
 
 
$
11,112
 
Trademarks
 
 
 
 
 
34,748
 
 
 
 
 
 
34,748
 
Total indefinite-lived intangible assets
 
 
 
 
$
45,860
 
 
$
 
 
$
45,860
 
Amortizable intangible assets:
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
Non-compete agreement
 
 
5
 
 
$
200
 
 
$
(73
 
$
127
 
Customer relationships
 
 
15
 
 
 
3,500
 
 
 
(428
 
 
3,072
 
Total amortizable intangible assets
 
 
 
 
$
3,700
 
 
$
(501
 
$
3,199
 
The amortizable intangible assets are included within other assets in the Consolidated Balance Sheets. See Note 9.
The Company performs an impairment test for goodwill and trademarks on an annual basis and more frequently if an event or changes in circumstances indicate that their carrying values may not be recoverable. Conditions that would trigger an impairment assessment include, but are not limited to, a significant adverse change in legal factors or business climate that could affect the value of the asset.
The Company uses a two-step process to test goodwill for impairment. The first step is to compare the applicable reporting unit’s fair value to its carrying value. The Company has determined the applicable reporting unit is its wholesale segment. If the fair value of the wholesale segment is greater than its carrying value, there is no impairment. If the carrying value is greater than the fair value, then the second step must be completed to measure the amount of the impairment, if any. The second step calculates the implied fair value of the goodwill, which is compared to its carrying value. If the implied fair value is less than the carrying value, an impairment loss is recognized equal to the difference. To date, the Company has never recorded an impairment charge on this goodwill.
The Company tests its trademarks for impairment by comparing the fair value of each trademark to its related carrying value. Fair value is estimated using a discounted cash flow methodology. To date, the Company has never recorded an impairment charge on these trademarks.
The Company recorded amortization expense for intangible assets of $273,000, $273,000 and $228,000 in 2013, 2012 and 2011, respectively. Excluding the impact of any future acquisitions, the Company anticipates future amortization expense to be as follows:
 
 
(Dollars in thousands)
 
Intangible Assets
2014
 
$
273
 
2015
 
 
273
 
2016
 
 
240
 
2017
 
 
233
 
2018
 
 
233
 
Thereafter
 
 
1,674
 
Total
 
$
2,926